Why a high trading volume doesn't mean a token is safe
A topic CriptoCheck doesn't directly check today -- here's why, and what to watch for instead
What trading volume is, in plain terms
Trading volume is simply how much value in tokens has been traded over a given period (usually the last 24 hours). A high volume is often read at a glance as a sign that "lots of people are buying and selling this token, it must be popular and trustworthy".
That reading, on its own, is misleading -- and it's important you know it, because it's a topic our 13 technical indicators don't directly cover today.
Why a high volume can be misleading
Trading volume can be generated artificially, without reflecting genuine interest from different people. A practice known as "wash trading" involves repeatedly buying and selling the same token, often between wallets controlled by the same person or group, for the sole purpose of making volume look higher than it really is.
Artificially inflated volume typically serves two purposes: giving the impression of a lively, popular project to anyone looking only at that number, and sometimes meeting the minimum volume requirements needed to appear on "trending" lists on certain exchanges or data aggregators.
What CriptoCheck says about this today
To be honest: we don't currently have a dedicated indicator that distinguishes genuine trading volume from artificially inflated volume. We show the last-24-hours volume as informational data in the "Market" section of every report, but we don't analyze it for suspicious wash-trading patterns.
We'd rather tell you clearly than let you assume it's already covered: if a token's volume looks suspiciously high relative to its actual notoriety or holder count, that's something you'll need to judge for yourself -- not a field where we can give you a technical answer today.
What to look at in the meantime
One useful comparison, even without a dedicated tool: if a token has very high daily trading volume but a surprisingly low holder count, or a virtually nonexistent online community, that's a discrepancy worth noticing on your own.
None of our 13 indicators replace this kind of common sense -- they're designed to flag specific, verifiable technical risks, not to cover every possible form of market manipulation that exists in crypto.
Now that you know what it means, try CriptoCheck on a real token.
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